As you enter your retirement years, you’re probably looking forward to relaxing, traveling, spending time with family and friends, picking up a new hobby or just having to the ability to do all the things you enjoy doing. That’s what retirement should be, after all; a time for new experiences after a long, rewarding career.
However, some retirees may worry how they will be able to maintain the lifestyle they’ve always had once they’re no longer in the workforce. This is why proper retirement planning and saving for the future is so key to a fulfilling life in our later years. However, there are also some ways to cut costs to ensure your retirement savings are not depleted within the first year or two of your retirement.
How to Keep Your Retirement Savings in Check
Research shows that around 71% of Americans have financial worries like not having enough money in their savings account. In fact, 34% have no savings outside their retirement savings plan! This means if an emergency were to arise, it may lead to a somewhat desperate situation.
This is why it’s important to evaluate your spending after you retire to discover some new ways to continue to build your retirement savings. Here are five tips for things you can do to cut some costs- and put that extra money right into a savings account:
- Stick to a budget. Hopefully, by this point you have been utilizing a budget regularly to keep track of your monthly expenses. If you haven’t, retirement is definitely the time to start. Otherwise, now that you have more time on your hands you might find yourself spending money you wouldn’t normally have spent in the past.
- Pay with cash. Put the plastic away and spend cash instead. Studies show that people who buy things with cash typically spend about 20% less than those who charge items. This is because before you make a purchase, you really have to think about where your money is going and what you might have to sacrifice that month to buy it.
- Travel during non-peak times. Once you’re retired, you have the option of traveling during the week when air fare may be cheaper. Or, you can travel during the off-season when kids are in school and rates for accommodations are lower.
- Downsize your home. Once you’re retired, your children are most likely moved out of the home and you may find yourself living in a space that’s simply too big for your needs. It can get difficult to maintain a large home in your later years, and big-ticket expenses like needing a new roof or furnace can really start to add up. You can consider downsizing into a smaller home or apartment, or even moving into an independent senior living community where all home maintenance tasks are included in your monthly rent.
- Ask for senior discounts. One of the biggest perks throughout your senior years is all the discounts you can get! Places like restaurants, movie theaters, museums, parks and even shopping centers offer senior discounts, allowing you to put the money saved right into your retirement savings account.